Investing in under-the-radar clean energy winners

TL;DR

Teemo Lang, manager of the Polar Capital Smart Energy fund, discusses investing in the energy transition towards renewables, electrification, and energy efficiency, highlighting investment opportunities in various sectors.

Transcript

hello and welcome to the latest Insider interview Our Guest today is Teemo Lang manager of the Polar Capital Smart Energy fund Teemo thank you very much for coming in thank you for having invited me Smart Energy fund what is it and how are you investing yeah so we are managing the polar capitals mod energy fund it's a fund that is investing in the ... Read More

Key Insights

• 🔬 The Polar Capital Smart Energy fund focuses on investing in the energy transition towards renewables, electrification, and energy efficiency.
• 🥶 The electrification trend drives industries like transportation, heating, and industrial processes towards consuming electricity from carbon-free sources.
• 🧡 The fund invests across the clean power generation sector, infrastructure buildout, energy conversion and storage, and energy efficiency, covering a wide range of companies.
• 😨 Semiconductor companies in the EV supply chain offer better investment prospects compared to car manufacturers themselves due to higher profit margins and diversified client bases.
• 😮 Rising input costs have affected wind turbine manufacturers but are expected to improve, while the solar industry offers decentralized and flexible investment opportunities.

Questions & Answers

Q: How does Teemo Lang's technical background as an engineer benefit him as a fund manager in the clean energy space?

Teemo Lang's technical background allows him to better understand and evaluate the new technologies involved in clean energy investments. It helps him assess the viability and potential of these technologies, distinguishing them from traditional energy investments.

Q: What are some examples of stocks that fit the electrification trend in the Polar Capital Smart Energy fund?

The fund invests in companies across the clean power generation sector, infrastructure buildout, energy conversion and storage, and energy efficiency. Examples include solar and wind industry companies, power semiconductor companies, battery companies, and companies addressing energy efficiency in various sectors.

Q: Why does the Polar Capital Smart Energy fund invest more in the supply chain of electric vehicles (EVs) rather than the car manufacturers themselves?

The supply chain of EVs offers better investment opportunities due to higher barriers to entry, allowing for higher profit margins. While some EV manufacturers struggle to break even, the fund finds semiconductor companies that optimize EV components more appealing and benefit from multiple clients.

Q: Has rising input costs affected investments in wind turbines and solar power?

Rising input costs have impacted wind turbine manufacturers, particularly in offshore wind, leading to bidding challenges due to cost inflation. However, the situation is expected to improve. The solar industry has already experienced a decline in prices and is considered an exciting investment opportunity.

Summary & Key Takeaways

• Teemo Lang manages the Polar Capital Smart Energy fund, which invests in the energy transition towards renewables, electrification, and energy efficiency.

• The fund focuses on the electrification trend, which involves industries like transportation, heating, and industrial processes moving towards electricity from carbon-free sources.

• The fund invests in companies across the clean power generation sector, infrastructure buildout, energy conversion and storage, and energy efficiency.